IFC interested in public-private partnerships in Serbia

Minister of Infrastructure Milutin Mrkonjic spoke yesterday with Gulrez Hoda, the Director of infrastructure and natural resources for Europe, Middle East and North America of the International Finance Corporation (IFC), a member of the World Bank (WB).

Mrkonjic stated that the IFC delegation expressed its willingness to support infrastructure development in Serbia through implementation of the model of public-private partnership.

They are interested in ready projects, Mrkonjic explained and underlined that the subject of talks would be the construction of the Belgrade metro, bridges and the bypass around Belgrade.

The Minister said at the meeting that Serbia’s priority in road infrastructure was completion of Corridor 10, which should be done by the end of next year.

The second priority is construction of the motorway from Belgrade to Boljare on the Montenegrin border – Corridor 11, which will cost €2 billion, Mrkonjic added.

The third priority is construction of regional motorways from Belgrade to Vrsac, from Ruma to Sabac, from Paracin to Zajecar and from Pojate towards the Republic of Srpska.

He announced that all the projects would be completed within the next 10 years.

When it comes to rail transport, a priority is the construction of Corridor 10, with the electrified double-track railway lines for mixed traffic, on which trains will be able to move at the speed of at least 160 kilometers per hour. For that purpose, a total of €4.6 billion will be earmarked over next six years, Mrkonjic pointed out.

Mrkonjic explained that a priority would also be the modernization of Belgrade – Bar railroad, which should cost around €350 million, as well as the commencement of construction of the Belgrade metro within the next two years.

According to him, the Danube is also a priority and €350 million will be invested over next four years in equipping ports. Another important matter will be formation of a new national airline in strategic partnership with a successful company.

Hoda said that IFC was interested in cooperation with Serbia and that all possibilities and projects proposed would be taken in consideration in the following period.

As he explained, IFC deals with public-private partnership at global level and the main point here is that the risk is distributed equally between public and private sector and that the model is well-structured.

IFC

Svetska Banka-WB Beograd